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Irvington council authorizes settlement to resolve tax-lien and Chancery actions tied to 21st Street HOME CHDO properties
Summary
The council authorized a settlement agreement with 21st Street Homes LLC and FIG (custodian for FIG NJ19 LLC) to resolve foreclosure and related Chancery litigation over ten properties developed with HUD HOME CHDO funding; the minutes summarize funding history, deed restrictions and prior litigation.
The Irvington Municipal Council on Oct. 15 authorized execution of a settlement agreement to resolve outstanding litigation and tax-lien issues involving ten properties on 21st Street that were developed with HOME CHDO funding.The properties (identified in council materials as Block 163 Lots 2.01, 2.02, 9–13 and Block 162 Lots 35.01–35.03) were the subject of HOME CHDO program funding and deed-restricted affordability controls. Council minutes state the township released $90,000 from HOME CHDO funds in 2014, that nine of ten two-family dwellings were constructed between 2015 and 2020, and that the township did not release remaining HOME CHDO funds alleged to be due to the developer.
Minutes recount subsequent tax-assessment treatment that treated the properties as market-rate rentals, a resulting inability by the developer to sustain taxes under affordability restrictions, and the sale or purchase of tax liens by third parties. The record references a 2020 tax-lien foreclosure action (SWC-F-8709-20) and related cross claims, a stipulation dismissing one lien action in 2023, and a separate foreclosure filed by FIG as custodian for FIG NJ19 LLC in Sept. 2024 (SWC-F-9128-24). Council authorized the Mayor and Business Administrator to execute a settlement agreement in a form substantially consistent with an attached Exhibit A and to take other steps to implement the settlement, subject to counsel review.
The resolution authorizes municipal officials (Mayor, Business Administrator, Tax Collector, Tax Assessor) to take actions necessary to effectuate the settlement. The minutes state the measure was adopted with the Mayor and administration directed to finalize required documents for court filings and tax-account adjustments where applicable.
